• The government of India’s SIDBI and Airbus Helicopters have signed a Memorandum of Understanding (MoU) for financing the purchase of Airbus’ helicopters in India.

• This collaboration marks a significant foray of Small Industries Development Bank of India (SIDBI) into helicopter financing and meeting the financial and development needs of India’s fast-growing rotary wing sector.

• Under the MoU, both Airbus Helicopters and SIDBI will identify potential civil helicopter operators in India who are interested in financing solutions for purchasing Airbus helicopters. 

• Airbus will provide the technical and helicopter industry knowledge to SIDBI who will evaluate these prospects and finance them exclusively for Airbus.

Small Industries Development Bank of India (SIDBI)

• Small Industries Development Bank of India (SIDBI) was established under an Act of the Parliament in April 1990. 

• SIDBI is mandated to serve as the principal financial institution for executing the triple agenda of promotion, financing and development of the Micro, Small and Medium Enterprise (MSME) sector and coordination of the functions of the various institutions engaged in similar activities. 

• SIDBI aims to emerge as a single window for meeting the financial and developmental needs of the MSME sector to make it strong, vibrant and globally competitive.

• Since its inception in 1990, SIDBI has been instrumental in transforming the landscape of MSME financing.

• Over the past three decades, SIDBI has successfully implemented various initiatives and schemes aimed at providing financial assistance, capacity building, and technological support to MSMEs. 

• These initiatives have not only facilitated access to credit but have also enhanced the competitiveness and sustainability of MSMEs, thereby contributing significantly to the country's socio-economic progress.

The MSME financing agenda of SIDBI is discharged through the following interventions:

i) Direct Lending: Financial assistance is extended to MSMEs directly through SIDBI branch network through demonstrative lending products to fill existing credit gaps, which could be further scaled up by the banking ecosystem.

ii) Indirect Lending: Financial assistance is extended to banks, Non-Banking Financial Companies (NBFCs), New Age Fintech, Small Finance Banks (SFBs), and Microfinance Institutions (MFIs), which creates a multiplier effect and increases the flow of credit to MSMEs including underserved/unserved MSMEs.

iii) Micro Lending: To effectively and efficiently serve entrepreneurs, through partnerships, at the bottom of the pyramid, especially women and poor.

iv) Fund of Funds: To boost the entrepreneurial spirit, equity support is extended to startups through Alternate Investment Funds (AIFs) under Fund of Funds being operated by SIDBI on behalf of the government.

v) Infrastructure Development: To promote cluster development, SIDBI Cluster Development Fund (SCDF) has been set up to provide low-cost funding to state governments for infrastructure development in MSME clusters.

vi) Green Financing: New initiatives are being taken for extending assistance to projects in the field of clean energy, climate change, electrical vehicles, energy efficiency, etc under Green Financing.

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